Entering an equity bought on TSX and sold on NYSE

CanSaver's Avatar

CanSaver

15 Feb, 2021 07:35 PM

I'm starting to work with both CAD and USD in my investments accounts. Per a recent thread, my thinking is to have 2 separate accounts in MD. One will track holdings in CAD and the other in USD.

I've got a scenario that I'm not sure how best to track using MD.

Let's say I buy 100 shares of ABC co. on the TSX in CAD. I enter this transaction into my CAD investment account. So far so good

ABC co. also trades on the NYSE. I sell my 100 shares of ABC co. on that exchange to produce USD. Since it's sold on the NYSE in USD, I'm going to want that transaction to show up in my USD account.

I don't see any way to transfer a holding from one account to another. If I sold my ABC co. in my USD account (without having transferred it), it would have the appearance of selling a holding that I don't have (and I'd still have the holding in my CAD account that I no longer own).

The best I've come up with is: even though these trades are taking place, if the buy/sell all happens within a couple of days, then I've really just done a cash exchange that I could do between my CAD and USD account, which I assume* would adjust the exchange accordingly. If the shares of ABC co. were going to continue to be held in my USD investment account, I could still do the cash exchange and then just buy ABC co. in my USD account. It's not exactly how things took place, but it achieves the same end result.

Does anyone have any other ideas how to track this in MD?

* I read in an old thread that you can't to an exchange rate conversion between investment accounts. Is that true? If so, how would I get around that?

  1. 1 Posted by Stuart Beesley ... on 15 Feb, 2021 07:54 PM

    Stuart Beesley - JUST A FELLOW USER and Toolbox ‘guy’'s Avatar

    Well my brain melted trying to understand your scenario, but I can say this. There is no share txfr function in MD between accounts. The only mechanism is to (fake) sell and then (fake) buy back in the to/from account. The sell/price should always be at the current cost basis price at that point in time so that your CB and gain remains correct in the new account.

    (Not support, just a fellow user)

  2. 2 Posted by dwg on 15 Feb, 2021 07:57 PM

    dwg's Avatar

    You have the added complication that there would also have to be a conversion of the value between CAD and USD - unless you can sell on the NYSE in CAD?

  3. 3 Posted by CanSaver on 15 Feb, 2021 08:06 PM

    CanSaver's Avatar

    @dwg the whole purpose of these transactions is to produce USD from CAD, so I want to sell in USD on the NYSE.

    @Stuart: Maybe this would simplify it. Buy a stock in CAD on the TSX. Sell the same stock on the NYSE to get USD.

    You have confirmed that the transfer I want to do isn't available in MD. So I'll do fake buys/sells accordingly with a money exchange in between.

    I didn't see a way to do a foreign rate exchange directly in the investment Register, but see I can adjust it in the "Bank Register" view of the investment account. I guess that's the way around currency exchange for investment accounts.

  4. 4 Posted by dwg on 15 Feb, 2021 09:18 PM

    dwg's Avatar

    To perform foreign currency transactions with conversion in an Investment account you have to use the Bank register.

  5. System closed this discussion on 17 May, 2021 09:20 PM.

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